In the name of taming inflation, central banks have deliberately set themselves on a path to cause a recession – or to worsen it if it comes anyway. Worse, today's monetary-policy tightening will leave long-lasting scars, whereas more carefully considered responses would work better and yield long-term benefits.
explains why the current demand-focused approach to taming inflation is all wrong.
Chinese leaders’ refusal to adopt a clear stance on zero-COVID is pure politics: nobody wants to be blamed for whatever surge in infections, hospitalizations, and deaths follows a reopening. But the longer the authorities attempt to avoid responsibility and muddle through, the greater the risk to public health.
warns that the government’s refusal to devise a comprehensive and systematic exit strategy could create the worst of two worlds.